Fintech trends in the CEE region

Damir Čaušević, CEO of Monri Payments and co-founder of Money Motion, discusses fintech trends in the CEE region.

European Central Bank study on the payment attitudes of consumers in the euro area shows that consumers are increasingly using digital payments, and the share of cash payments is continuing to decline as a result. In the CEE region, the situation varies between countries, but one trend is clear—digital wallets are rapidly gaining traction.

In the CEE region, the situation varies between countries, but one trend is clear—digital wallets are rapidly gaining traction. In Croatia, for example, every tenth POS transaction in 2024 was made using a digital wallet instead of a physical card, according to Monri’s payment data. At Monri Payments, we recognise that digital and innovative payment methods enhance not only the customer experience but also the merchants’ operational efficiency. That’s why we maintain close communication with our clients, gathering valuable insights into consumer preferences. This ongoing dialogue allows us to develop and tailor cutting-edge digital payment solutions that meet the unique needs of different industries and markets across the region.

We are transitioning from a period when the average user waited for their income payment, withdrew it from their account, and then spent that money in cash to widespread usage of card payments and digital wallet transactions. Fast and secure payments have become the norm, with consumers expecting the process to be seamless and almost imperceptible. This isn't just a trend in the retail sector but also in hospitality and service payments in general. We don't only focus on major mainstream trends but also on those who are experimenting with cryptocurrencies and instant payments—some local examples include Aircash and Keks Pay in Croatia, Ropay in Romania, and IPS in Serbia.

Expanding across multiple CEE markets comes with several challenges, including managing diverse regulations, understanding cultural differences, and adapting to varying consumer behaviours.

Establishing strong local partnerships is crucial for overcoming regulatory and market-specific obstacles. Additionally, ensuring that the technology platform is scalable allows businesses to stay ahead of evolving market trends. From my experience, investing in local customer support and providing personalised approach is essential for building trust and maintaining smooth operations. The majority of big players are still avoiding the CEE market because some markets remain outside the EU, meaning these players can’t utilise their cross-border acquiring licenses. That’s why our strategy from the very beginning has been partnership and collaboration with all relevant participants in the local market, primarily banks.

Our intention is to bring together all participants of the fintech ecosystem, including fintech and crypto companies, banks, card schemes, retailers, regulators, and end users. For this reason, we believe that this year's Money Motion will be more dynamic than ever. Our goal is to encourage discussion because development of fintech in Europe and around the world indicate that everyone is trying to find their own angle in the whole landscape, but viewpoints differ.

A few topics have really stood out in the past year of fintech: the increasing movement towards cashless, and also cardless, payments, and the question of crypto taking its well-deserved place at the mainstream table. We are witnessing a significant move by incumbent companies toward opening their businesses to new blockchain-based solutions and crypto tokens as means of holding and exchanging value. I expect an interesting discussion with leaders in the financial industry about payments in transition, as well as with retailers.

Significant interest and buzz have been generated around the idea of introducing a digital form of cash, issued by the central bank and accessible to everyone in the euro area. The European Central Bank is working with the national central banks of the euro area to explore the possible issuance of a digital euro. It would be a central bank digital currency, an electronic equivalent to cash, and it would complement banknotes and coins, giving people an additional choice about how to pay. The positive aspect is that key stakeholders have been involved in the discussion and working groups from the very beginning, which will help make adoption faster. There are still many open and unanswered questions about acceptance infrastructure and interoperability between countries. At Money Motion, we will also have representatives from the ECB who are specifically responsible for the topic of the digital euro, and it's great that we continue to talk about this subject, as it is the future that awaits us.

About Damir Čaušević

Damir Čaušević is an entrepreneur and CEO of Monri Payments, a leading payment service provider in Southeast Europe. Čaušević co-founded Monri Payments in 2017, which has grown rapidly thanks to its innovative solutions. In 2022, with a group of fintech enthusiasts, Damir co-founded Money Motion, the largest fintech conference in the region. His achievements have significantly impacted the fintech industry in Croatia and Southeast Europe, and his leadership and commitment to promoting entrepreneurship and innovation will continue to inspire future generations of entrepreneurs.

About Monri Payments

Founded in 2017 Monri Payments started as a small startup with a bold vision: to simplify and improve digital payments. By 2019, with 10 employees Monri managed to deploy an omnichannel orchestration platform which skyrocketed its growth. Today, Monri's 200-person team serves more than 15k merchants across 9 countries with a focus on more international expansion. Monri’s groundbreaking payments orchestration platform is designed to simplify the lives of cashiers and merchants, resolving payment challenges in a safe (PCI DSS) and fully compliant model. It consolidates everything into a single payment system, ensuring 0% error, saving time & reducing tech waste, optimises routing for higher approval rates, and integrates with cash registers, all with a strong desire to enhance business operations and CX.  Monri’s multi-sensory transaction confirmation was awarded by Mastercard in 2023, and in 2024 Monri was named a Deloitte Impact Star for contributions to business, society & sustainability.